Explaining What BBRSDA Can Do
/There’s been some confusion regarding what sort of activities BBRSDA can and cannot do. We hope this blog post will provide more clarity.
KEY POINTS
BBRSDA has the ability to execute a broad range of activities in support of its mission (to maximize the value of the Bristol Bay salmon fishery for its members) and the RSDA assessment funding is not subject to regulatory prohibitions listed in 3 AAC 149.080, including supporting price negotiations between fishers and seafood processors.*
EXPLANATION
Regional Seafood Development Associations (RSDA) are nonprofit corporations which have the ability to receive tax assessments from commercial fisheries in their region and are established for a set of guiding statutory purposes contained in the founding legislation (AS 44.33.065). Those purposes are:
(A) promotion of seafood and seafood byproducts that are harvested in the region and processed for sale;
(B) promotion of improvements to the commercial fishing industry and infrastructure in the seafood development region;
(C) establishment of education, research, advertising, or sales promotion programs for seafood products harvested in the region;
(D) preparation of market research and product development plans for the promotion of seafood and their by-products that are harvested in the region and processed for sale;
(E) cooperation with the Alaska Seafood Marketing Institute and other public or private boards, organizations, or agencies engaged in work or activities similar to the work of the organization including entering into contracts for joint programs of consumer education, sales promotion, quality control, advertising, and research in the production, processing, or distribution of seafood harvested in the region;
(F) cooperation with commercial fishermen, fishermen's organizations, seafood processors, the Alaska Fisheries Development Foundation, the Fisheries Industrial Technology Center, state and federal agencies, and other relevant persons and entities to investigate market reception to new seafood product forms and to develop commodity standards and future markets for seafood products;
Given that 1) the definition of the word “promotion” is an “activity that supports or provides active encouragement for the furtherance of a cause, venture, or aim”, and 2) there are many activities which would qualify as an “improvement to the commercial fishing industry”, we believe these statutory purposes provide for a broad range of activities to meet BBRSDA’s mission of maximizing fishery value for the benefit of members.
Some confusion has also arisen regarding whether BBRSDA is prohibited from doing certain activities, such as negotiating prices or lobbying. According to regulation (3 AAC 149.080), state financial assistance may not be used:
1. to the disadvantage of a seafood development region not represented by the qualified regional seafood development association;
2. for price negotiations between fishers and seafood processors; or
3. to pay expenses associated with lobbying a municipality or an agency of a municipality, or with lobbying the state or an agency of the state; for purposes of this paragraph.
However, BBRSDA has received written guidance from the State of Alaska’s Department of Commerce, Community, and Economic Development that states:
Revenue generated by the seafood development tax is not considered state financial assistance and therefore not subject to the regulatory prohibitions provided by 3 AAC 149.080.
In summary, BBRSDA has the ability to execute a broad range of activities in support of its mission and the RSDA assessment funding is not subject to regulatory prohibitions listed in 3 AAC 149.080, including supporting price negotiations between fishers and seafood processors.
Links for further reading:
RSDA Statutes - RSDA Regulations - BBRSDA Bylaws - State of Alaska Guidance
* BBRSDA has no authority to directly negotiate prices on behalf of its fishermen members; however, the organization could provide financial support for negotiations, for example legal representation, consulting services, meeting venue rental, etc.
